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Expert Analysis

A Cautionary Tale For Involuntary Bankruptcy Petitioners

Law360, New York (October 26, 2015, 12:23 PM EDT) -- This month's decision by the U. S. Court of Appeals for the Third Circuit in In re: Forever Green Athletic Fields Inc., No. 14-3906 (3d Cir. Oct. 16, 2015) held that an involuntary bankruptcy petition filed under 11 U.S.C. § 303 may be dismissed for bad faith. The decision places another hurdle for creditors to surmount when considering whether to put a debtor in bankruptcy and creates another means for debtors to oppose such filings. It also enumerates the standard for evaluating whether a filing is in bad faith....

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